GM to Invest Another $50 Million in Korean Operation

  • By Ryu Jung

    July 23, 2018 12:44

    GM will invest US$50 million in its ailing Korean subsidiary and develop it into an R&D foothold for small-to-mid-sized SUVs.

    GM Korea said Friday that its U.S. headquarters decided the investment will go into its plant in Bupyeong, west of Seoul, one of three that remain after the closure of the Gunsan assembly plant in May.

    "In addition to our existing role as a foothold for small SUV development, we will also become the focal point of mid-sized SUV development," GM Korea said.

    The new cash injection comes on top of $2.8 million the U.S. automaker promised in May to get its Korean subsidiary back on its feet.

    GM Korea will start producing a new small SUV in Bupyeong next year that has been under development. At present it manufactures the Trax and Encore compact SUVs and the Malibu and Aveo sedans there.

    For the task of developing a new mid-sized SUV to succeed the Equinox, the company will hire 100 new staff, bringing the total number of R&D staff to more than 3,000.

    The Korean unit will also take on the role of Asia-Pacific headquarters of the U.S. automaker. GM's chief of overseas operations, Barry Engle, said, the move is part of the automaker's pledge with the Korean government to make long-term investments into the Korean unit.

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